GM about to announce plant closings?

[Doug Loudenback]

From http://news.techwhack.com/2506/20111...-based-plants/ ...

General Motors might close four US based plants

General Motors might close four US based plants

Market sources claim that the Chief Executive of the world’s largest automaker General Motors Rick Wagoner is due to announce company’s plan to close around 4 of their United States based car production plants. The announcement can come anytime this week itself and the reports quote a company insider for this information.

The AP version of the story is here: http://newsok.com/article/1646137/?template=home/main

I've not been able to locate anything yet which identifies or speculates about which plants, but I suppose that the OKC plant may well be a possibility.

[Karried]

Crap - closing in early 2006 -over 2500 employees lose their jobs - Merry Christmas -

[Doug Loudenback]

Here it is, from ABC news at http://www.abcnews.go.com/Business/wireStory?id=1333118

GM to Cut 30,000 Jobs, Close 9 PlantsGeneral Motors to Cut 30,000 Manufacturing Jobs, Close Nine North American Plants
By DEE-ANN DURBIN AP Auto Writer
The Associated Press

DETROIT Nov 21, 2005 — General Motors Corp. will eliminate 30,000 manufacturing jobs and close nine North American assembly, stamping and powertrain plants by 2008 as part of an effort to get production in line with demand.

The announcement Monday by Rick Wagoner, chairman and CEO of the world's largest automaker, represents 5,000 more job cuts than the 25,000 that the automaker automaker had previously indicated it planned to cut.

GM said the plants that will close are in Oklahoma City, Lansing, Mich., Spring Hill, Tenn., Doraville, Ga., and Ontario, Canada.

[Doug Loudenback]

And, from http://www.thestreet.com/_googlen/st...FREE&cm_ite=NA

General Motors Cuts Deeper

By TSC Staff
11/21/2005 9:02 AM EST


General Motors (GM:NYSE - commentary - research - Cramer's Take) raised the number of jobs it plans to cut over the next three years to 30,000 Monday, and said it expects to lower its annual cost structure by $7 billion by the end of next year.

GM CEO Rick Wagoner said up to nine GM plants are now slated to cease operations as part of the restructuring, which represents an expansion of the cost-reduction program the company outlined earlier this year. The moves will reduce GM's North American assembly capacity by about 1 million units by the end of 2008.

Previously, the company was targeting 25,000 job reductions. "Much" of the reduction will be carried out through attrition, Wagoner said, adding that they will result in a significant restructuring charge.

The $7 billion of annual cost reductions reflect $6 billion in structural cost cuts, up from a previous goal of $5 billion, plus $ billion of material cost savings. "Our collective goal remains the same: to return our North American operations to sustained profitability as soon as possible, thereby helping to ensure a strong General Motors for the future," Wagoner said.

GM said production will cease at its Oklahoma City plant; its Lansing, Mich., craft center; its Doraville, Ga., plant; its Lansing, Mich., metal center; its Pittsburg metal center; its Portland, Ore., parts distribution center; its parts processing center in Ypsilanti, Mich.; its engine facility in Flint, Mich.; and its power train components facility in Ontario.

Operations will also cease at Line No. 1 at its Spring Hill, Tenn., plant; on the third shift at its Oshawa car plant No. 1 in Ontario; and on the third shift of its Moraine, Ohio, plant. GM said the parts distribution center in St. Louis will cease warehousing activities and be converted to a collision center and one other parts processing center will cease operations.

[Pete]

Nov 21, 9:13 AM EST

GM to cut 30,000 jobs, close 9 plants

By DEE-ANN DURBIN

AP Auto Writer

DETROIT (AP) -- General Motors Corp. will eliminate 30,000 manufacturing jobs and close nine North American assembly, stamping and powertrain plants by 2008 as part of an effort to get production in line with demand.

The announcement Monday by Rick Wagoner, chairman and CEO of the world's largest automaker, represents 5,000 more job cuts than the 25,000 that the automaker had previously indicated it planned to cut.

GM said the assembly plants that will close are in Oklahoma City, Lansing, Mich., Spring Hill, Tenn., Doraville, Ga., and Ontario, Canada.

An engine facility in Flint, Mich., will close, along with a separate powertrain facility in Ontario and metal centers in Lansing and Pittsburgh.

Wagoner said GM also will close three service and parts operations facilities. They are in Ypsilanti, Mich., and Portland, Ore., and one unidentified site. A shift also will be removed at a plant in Moraine, Ohio.

"The decisions we are announcing today were very difficult to reach because of their impact on our employees and the communities where we live and work," Wagoner told employees. "But these actions are necessary for GM to get its costs in line with our major global competitors. In short, they are an essential part of our plan to return our North American operations to profitability as soon as possible."

GM said the plan is to achieve $7 billion in cost reductions on a running rate basis by the end of 2006 - $1 billion above its previously indicated target.

Wagoner said last month the automaker would announce plant closures by the end of this year to get its capacity in line with U.S. demand. GM plants currently run at 85 percent of their capacity, lower than North American plants run by its Asian rivals. The plant closings aren't expected to be final until GM's current contract with the United Auto Workers expires in 2007.

GM has been crippled by high labor, pension, health care and materials costs as well as by sagging demand for sport utility vehicles, its longtime cash cows, and by bloated plant capacity. Its market share has been eroded by competition from Asian automakers led by Toyota Motor Corp. GM lost nearly $4 billion in the first nine months of this year.

The automaker could be facing a strike at Delphi Corp., its biggest parts supplier, which filed for bankruptcy protection last month. GM spun off Delphi in 1999 and could be liable for billions in pension costs for Delphi retirees.

GM also is under investigation by the U.S. Securities and Exchange Commission for accounting errors.

Last week, after the automaker's shares fell to their lowest level in 18 years, Wagoner sent an e-mail to employees saying the company has a turnaround strategy in place and has no plans to file for bankruptcy.

[writerranger]

Globalization hits the heartland hard today.

[Doug Loudenback]

According to this page of the Greater Okc Chamber of Commerce, http://www.okcchamber.com/page.asp?atomid=124, GM employs 3,400, but I don't know how current that information is.

[okrednk]

That sucks. I hate it, when OK gets hit by something like this.

[Doug Loudenback]

For sure. Other than some general statements in the AP story, and here at Reuters, http://today.reuters.co.uk/news/news...K-AUTOS-GM.xml, I've seen nothing particular about timing of the shutdown, other than in 2006, generally. FWIW, the announced was coupled with the hope that,

GM said it hoped to be able to achieve much of these cuts through attrition and buyouts.

We shall see.

[Doug Loudenback]

Uh oh! I've just read this at http://newsok.com/article/1683827/?template=home/main

City GM Workers Shocked
By Greg Elwell
The Oklahoman

The Oklahoma City General Motors assembly plan was on lockdown Monday morning after the announcement the company would close nine manufacturing plants, including the Oklahoma City facility, by 2008.

A vendor to the company, who was coming out of the United Auto Workers offices, said workers inside were shocked at the announcement.

Former Oklahoma City police chief Sam Gonzoles, who now works with a GM supplier, said they couldn't believe the news and that United Auto Workers representatives previously told them the plant would not be closed.

Representatives for local 1999 said they had no comment on the announced closing but would likely release a statement later in the day. ....

The word "lockdown" seems to answer the question, "When". But, maybe better news will occur during the day and days ahead, maybe not.

The story also indicates the number of employees to be "more than 2,400".

Here's the Oklahoman's pic, slightly enlarged.

[mranderson]

The Oklahoma City plant is among four announced for closure.

We need to get someone in there, and fast. Not only will we lose 2,400 GM workers, we will lose support companies as well. This is the most devistating news to hit in some time.

[Doug Loudenback]

From KOCO-TV, http://www.channeloklahoma.com/news/5373560/detail.html

Watch Live Coverage Of UAW, Governor's News Conferences

POSTED: 10:25 am CST November 21, 2005
UPDATED: 10:36 am CST November 21, 2005

OKLAHOMA CITY -- In reaction to the announced closing of the GM plant in Oklahoma City, the UAW will be holding a news conference at about noon on Monday. Gov. Brad Henry is also scheduled to hold a news conference at about that time; however, his exact starting time is unknown for sure.

Be sure to watch Eyewitness News 5 for comprehensive coverage of this story and its effect on Oklahoma City. We'll be carrying these news conferences live on channeloklahoma.com.

[Luke]

Hyundai is expanding like crazy people. Perhaps they can look at the plant and retrofit it for their stuff.

[Patrick]

The plant employs 2,400 people...high paying jobs....these people will lose their 50,000K jobs a year and be working at AOL for $9.50 an hour. Thanks George Bush for the high oil prices that have contributed to this.

[Patrick]

I was actually afraid of this. I never thought the plant should've been retooled for SUV's. We were doing much better when we were making Malibus.

I say Oklahoma needs to boycott GM.

I think GM is stupid for doing this. They could've saved more money by cutting plants in areas with higher a cost of living. They would've actually have saved money by staying in OKC.

[Patrick]

On top of that, GM spent millions rebuilding the plant after the tornado. Why? What a waste of millions of dollars.

[Patrick]

The UAW just stated that the plant was closing because of high gas prices, which had created a low demand for SUV's. Who can we blame for this? Well, the UAW came right out and said we can thank the big oil Bush administration for the closure.

[Patrick]

If Mick Cornett is reading, we need to approach this from two sides:

1. We need to first try to encourage GM to see that oil prices have fallen, and demand for SUV's should rise again. If that doesn't happen, we need to try to encourage GM to spend the money to retool the plant to produce a different automobile. Tey've already dropped so much money into the GM plant. Why let that go to waste?

2. If we can't keep GM, we need to try to attract another car manufacturer to the plant. As Luke said, Hyundai is growing by leaps! Why? Because they offer a fuel efficient car.

The car market is really fluid. Back during and right after the oil bust, US automakers were losing the fight to Japanese automakers. Gas prices were high at that time, and gas guzzling American cars weren't competing with smaller, fuel efficient Japanese cars.
Then after the oil bust, the market shifts. Gas is cheap, and people start buying larger cars again. Once again, we've returned to the oil boom days....foreign smaller cars are being preferred over larger American cars.

One thing I'd like to point out....I think it's very interesting that gas prices are falling now, while the Senate is investigating price gouging.

[metro]

One thing I'd like to point out....I think it's very interesting that gas prices are falling now, while the Senate is investigating price gouging.

Thus the main reason for them falling, I couldn't agree more

[Pete]

GM wants to blame gas prices, but this is all of their own doing. They are horrifically mis-managed.


As much as it stinks in the short-term for OKC, here's some things to think about:

1. I believe a certain percentage of the employees will continue to be paid after shutdown as part of the contract with the UAW.

2. Employees have had this hanging over their heads for over a decade and I would hope most of them are smart enough to have saved and have some sort of contingency plan.

3. I will actually be somewhat relieved to finally be divorced from awful, awful GM and their on-going, lingering threats.

4. At least the local economy is in pretty good shape currently. If this had happened 10 years ago, it would be much more crippling.

5. The rail service at that site has always been problematic and isn't easily resolved. I've heard this from a rail transport consultant and that worries me about finding someone to replace GM.

[ptwobjb]

Folks I have no love for oil companies. But oil prices are not controlled by oil companies. The price is simply what the market is willing to pay for it. If someone out there offers $70 a barrel, well, guess what, $70 is now the price. If you want to point fingers, look at OPEC or the United States' current energy policy. Our gov't does not have the balls to tax gas, which is probably the only way to drive down consumption.

Oil is a commodity, which means the producers have very little control of the price.
More demand = higher price.

Period.

[Patrick]

What's out there to prevent oil companies from price gouging?

[Patrick]

BTW, I have ideas for both the GM plant and old Lucent plant. How about two mega call centers? We don't have any of those around here and it would diversify the economy!

[Doug Loudenback]

BTW, I have ideas for both the GM plant and old Lucent plant. How about two mega call centers? We don't have any of those around here and it would diversify the economy!

Dream on, teenage queen!

[Karried]

If there are any readers on this forum who's job is affected, our prayers and thoughts are with you - it's a tough thing to go through.

I think it's crappy timing right before the holidays.

We are thinking of you all and hoping that you will recover quickly.

I will never buy a GM again if they don't rectify this.. you can bet the big wigs at that company won't have to alter their holiday plans. Jerks.